TaxNegative suggests that a one-percentage-point increase inthe tax rate for this type of fiscal policy—that is, a one-percentage-pointincrease in distortionary taxes accompanied by a one-percentage-pointincrease in either unproductive spending or nondistortionary taxes (seetable 3)—would lower annual economic growth by 0.18 percentagepoints. Alternatively, a one-percentage-point increase in taxes as part of aTaxAmbiguous fiscal package is associated with lower annual economicgrowth of 0.11 percent. If part of a TaxPositive fiscal package, the sametax increase is associated with a 0.02 percent increase in economic growth
taxnegative = distortionary taxes and unproductive spending, or nondistortionary taxes, lowers growth -0.18
taxambigous = lower -0.11
taxpositive = 0.02 growtyh